{"id":40157,"date":"2013-06-18T15:23:41","date_gmt":"2013-06-18T13:23:41","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=40157"},"modified":"2013-06-19T09:25:27","modified_gmt":"2013-06-19T07:25:27","slug":"telkom-seeks-6-million-from-former-md","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/40157\/telkom-seeks-6-million-from-former-md\/","title":{"rendered":"Telkom seeks $6 million from former MD"},"content":{"rendered":"

Telkom<\/a> has instituted legal action against a former senior executive of the company, Thami Msimango<\/a>, in two separate claims amounting to $6 million (R60.3 million), alleging acts of recklessness and breach of contract.<\/p>\n

Telkom has filed a lawsuit at the high court in Pretoria.<\/p>\n

The legal action is part of a summons Telkom has issued out against JSE-listed Blue Label Telecoms<\/a> and four other parties claiming R5.21 billion in damages relating to the Multi-Links fiasco.<\/p>\n

The claim relates to alleged damages suffered by Telkom arising out of a super dealer agreement (SDA) concluded between Blue Label subsidiary, Africa Prepaid Services (APSN) and Multi-Links.<\/p>\n

Blue Label was contracted to distribute Multi-Links\u2019 products in Nigeria, however Telkom then cancelled the deal as part of a cost saving effort.<\/p>\n

Telkom lost over R10 billion over 50 months on its disastrous acquisition of Multi-Links, and it was forced to write off billions before cutting losses in a fire sale to an affiliate of Helios in 2011.<\/p>\n

Telkom has issued the claim against Blue Label Telecoms, subsidiaries of Blue Label Telecoms and individuals including Msimango, seeking US$528,071,116 (R5.21 billion).<\/p>\n

Msimango, who is no longer employed by Telkom, had been chief of global operations, and was appointed MD of Telkom International and Nigerian based subsidiary Multi-Links in 1 April 2009.<\/p>\n

Under “claim A”, Telkom is looking for payment of $1 million, which it says it owed and paid to PCCW Global for a voice service agreement signed by Msimango, which Telkom adds, was in breach of his contract.<\/p>\n

The second claim relates to a payment of $5 million by BLS Telekom to Multi-Links in 2009, despite no authorisation by Telkom. Multi-Links disputes receipt of the amount, according to court papers filed by Telkom.<\/p>\n

In both instances, Telkom claims that Msimango acted \u201cwantonly, recklessly, arbitrarily or capriciously\u201d and acted \u201cwithout exercising a proper discretion\u201d.<\/p>\n

Blue Label Telecoms says it will challenge the claim brought against its subsidiaries by Telkom.<\/p>\n

More on Telkom<\/h3>\n

Blue Label hits back at Telkom claims<\/strong><\/a><\/p>\n

Telkom tackles Blue Label for R5.21 billion<\/a><\/strong><\/p>\n

Telkom earnings sink<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Telkom is taking legal action against a former executive claiming $6 million for alleged acts of recklessness and breach of contract.<\/p>\n","protected":false},"author":9,"featured_media":17843,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[1382,26,65,6085],"class_list":["post-40157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-blue-label-telecoms","tag-headline","tag-telkom","tag-thami-msimango"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/40157","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=40157"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/40157\/revisions"}],"predecessor-version":[{"id":40168,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/40157\/revisions\/40168"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/17843"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=40157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=40157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=40157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}